President Director's Speech

Erri Dewi Riani

President Director

Dear Stakeholders, As a company that serves the electricity needs of various segments ranging from Industry, Business and Society, KDL always prioritizes innovation and the best service.

Global Economic Conditions

KDL's journey in 2022 was colored by global geopolitical turmoil in the form of the Russian and Ukrainian Wars. This situation greatly pressures the commodity supply chain at the global level which ultimately drives up prices, including the price of the main raw material for the generation process, namely natural gas.

Implementation of Business Strategy

Throughout 2022, the Company made various important breakthroughs that became the projection of the foundation of sustainable growth launched by the Shareholders. Starting with the mandate to further strengthen the business portfolio according to the company's core competencies. The Board of Directors took a strategic step by releasing KDL's PT Krakatau Information Technology shares to PT S Krakatau Sarana Infrastruktur by 11.72%.

Business Performance Achievement

The year 2022 was a year full of challenges, one of which was the Russian-UKrainian geopolitical conflict which affected the rupiah exchange rate against the US Dollar. This event is an unavoidable external factor that has an influence on the Company's performance. Nevertheless, the Company continues to work hard to achieve the targets set in the RKAP.

Continuous creativity and innovation supported by consistency towards achieving the Company's targets are the main factors that influence the Company's achievement in 2022. In addition, the company also maintains the health of all its employees with strict health protocols so that productivity can be maintained.

Business Outlook

During 2022, generation production is running positively with average demand reaching 94.86 MW even though it is still hit by business uncertainty after the Covid-19 recovery.

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